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Mar 15, 2005
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Mar 10, 2005
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Feb 17, 2005
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Feb 03, 2005
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Feb 02, 2005
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Jan 18, 2005
- FSS Announces Major Organization & Workforce Changes
- The FSS announced the results of the organization and workforce innovation initiative that was launched in October of 2004 to renew and reinvigorate the FSS as an efficient and effective supervisory organization backed by a highly specialized workforce capable of meeting the ever-growing demands and challenges of the marketplace.The organization and workforce innovation initiative, prompted and driven by the growing market demand for highly efficient and specialized supervisory services, brings about a number of major changes to the current examination structure, seeks greater synergy from the integrated supervision, creates a macro-supervision department to help formulate forward-looking supervisory policies, and institutes workforce changes that stress performance-based personnel management and pay. To provide independent perspectives and expertise in implementing the organization and workforce initiative, A.T. Kearney participated in the initiative as an outside consultant.SUMMARY OF ORGANIZATIONAL INNOVATION1. Reorganization of the examination structureThe examination staff and departments are restructured with the goal of enhancing the ability of the examiners to conduct onsite examinations “whenever necessary, to the extent necessary, and with the examiners necessary” on the basis of the continuous surveillance of financial institutions and to minimize the burden financial institutions face in complying with FSS examinations. The examination teams, which are divided into offsite surveillance and onsite examination teams, are merged together to enable the examiners to carry out both offsite surveillance and onsite examination simultaneously. With the transition to the “relationship manager” system, each examination team is to be assigned specific financial institutions to monitor and examine. An examination support department, staffed by examiners with technical expertise in risk management, IT and other specialized areas, is also newly created to suppo
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Dec 23, 2004
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Dec 07, 2004
- Domestic Banks Report Net Income Totaling KRW5,679.3 Billion for the First Three Quarters of 2004
- Domestic banks reported net income totaling KRW5,679.3 billion for the first three quarters of the year, up KRW4,075.4 billion from KRW1,603.9 billion a year earlier. Higher interest income from increased lending amid stable interest rate spreads, a drop in provisioning for problematic loans and a jump in investment income and bancassurance revenues helped to push the net income higher. The ROA of the 19 domestic banks averaged 0.74%, compared with 1.38% for U.S. commercial banks (first half, 2004) and 1.25% for the top 5 banks of the U.K. (2003).Loans classified as substandard or below (SBL) fell KRW1,059.1 billion to KRW17,619.3 billion from KRW18,678.4 billion at the end of 2003. The ratio of SBL to total loans outstanding (SBL ratio) also fell to 2.37% from2.63% during the same period on a large drop in SBL related to SK Networks and a general improvement in loan asset soundness.* Please refer to the attached PDF for details.
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Sep 23, 2004
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Sep 22, 2004
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Sep 20, 2004
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Sep 10, 2004
- Findings of General Examination on Kookmin Bank
- The Financial Supervisory Service conducted a general examination on Kookmin Bank from April 7 to May 12, 2004, with a particular focus on the bank’s management status evaluation and its compliance with the Banking Act and other pertinent laws and regulations. The findings of the general examination are summarized as follows:1. Results of the Management Status EvaluationThe overall rating for Kookmin Bank’s management status evaluation as of the end of March 2004 fell by one grade from the previous overall rating Kookmin Bank received at the end of September 2002. Because of weaknesses in the bank’s asset quality, profitability, capital adequacy and business management, more than the customary disciplinary warning is required to appropriately address them.In particular, the bank’s asset quality significantly deteriorated. As of the end of March 2004, the loan default ratio (defaulted loans over total loans outstanding) was 4.42%, and the ratio of loans classified as substandard or below (sum of loans classified as substandard, doubtful or presumed loss over total loans outstanding) reached 4.24%, comparatively higher than those of other banks. These ratios reflect structural weaknesses in the bank’s loan portfolio burdened by exposures to economy-sensitive sectors (e.g., credit card, households, and small and medium-sized companies) and high -risk businesses as well as realization of distress in the bank’s credit card business with relatively large potential losses.Mostly as a result of deteriorating asset quality and loan -loss provisioning, Kookmin Bank recorded net loss of KRW753.3 billion for 2003. For the first half of 2004, Kookmin Bank’s net income came to KRW307.6 billion, which is comparatively smaller than net income reported by other banks. For the year from April 2003 to March 2004, Kookmin Banks’ ROA was -0.52%.As of the end of March this year, Kookmin Bank’s BIS capital adequacy ratio fell below the 10.86% average to 10.11% mostly as
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Aug 30, 2004
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Jul 26, 2004
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Jun 09, 2004
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Mar 10, 2004
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Dec 16, 2003
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Nov 28, 2003
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Sep 25, 2003
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Sep 09, 2003